Unemployment benefit

Arbeitslosengeld I (ALG I, unemployment benefit I) is an insurance benefit from unemployment insurance in Germany – you paid contributions while you were employed and now receive a benefit.

Requirements:

• At least 12 months of employment subject to social security in the last 30 months
• Registered as unemployed with the Employment Agency
• Actively looking for work

Amount:

• Without a child: 60% of your last net salary
• With a child: 67% of your last net salary
• Example: last net pay €2,500 × 60% = €1,500 ALG I

Duration:

• 12 months of employment = 6 months of ALG I
• 24 months of employment = 12 months of ALG I
• Over 50 + 30 months of employment = up to 24 months

After that: Bürgergeld (if still looking for work and in need).

Important: ALG I is subject to the progression clause – it is tax-free but increases the tax rate on your other income.